Chit fund scam: Congress wants Sebi, CBI to probe 'scam'

KOLKATA: The Congress has demanded an investigation by Sebi and CBI into the " chit fund scam" which has exploded in West Bengal. "We also demand that the state government publish a white paper on the activities of chit funds, to establish that the government had no involvement with these organizations," Pradesh Congress Committee president Pradip Bhattacharya said on Saturday.

In Delhi, Union minister of state for railways Adhir Chowdhury accused the ruling Trinamool Congress of patronizing chit funds. "The Trinamool government has completely failed to govern the state, as recent events in the state have shown. Why is the chief minister silent on the chit fund issue?" Chowdhury told a television channel.

Both Bhattacharya and Chowdhury blamed the growth of chit fund business in the state on the Mamata Banerjee government and the previous Left Front government, giving a clean chit to the Congress-led government at the Centre.

"Some months ago, minister of corporate affairs Sachin Pilot had warned the state government about the growing danger of chit funds in West Bengal. The government did nothing," Bhattacharya said. According to Chowdhury, after Sanchayita, chit funds have resumed their activities in Bengal since 2005-06, but after the change in government, they started receiving direct patronage of the party in power.

"When the new government led by Trinamool assumed office, we had expected transparency in administration. But unfortunately this has not happened. Senior leaders of the party, ministers and MPs have been associated with these chit funds," Bhattacharya added. Chowdhury said Trinamool MP Somen Mitra was marginalized in the party after he drew attention to the threat chit funds posed. Mitra claimed he had written to the PM long ago about that. As a result of chit funds, the government's small savings schemes were being badly hit, too. "I only did my duty," he said.